Indian industry needs to change its role in the current global value chains. Strong domestic sources, independence from the existing model, and policy support from the government can help industries become better players in GVCs
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Until a few years ago, global value chains (GVCs) were assumed to be an inevitable part of large-scale businesses with an international footprint. Protectionist tendencies driven by domestic employment concerns and the Covid-19 pandemic have raised fundamental questions about the future trajectory of GVCs. How should Indian companies look at GVCs while planning for the future?
“We wouldn’t look at a company or a business where you source in one corner of the world and sell in another corner of the world”, quipped Kumar Mangalam Birla, Chairperson of the $46 billion worth Aditya Birla Group—that has businesses across 36 countries—at the recently concluded Qatar Economic Forum. This statement has made headlines since in the last 20 years, Aditya Birla Group has made over 40 acquisitions in India and globally. These include Novelis (a global metals major), Columbian Chemicals (US-based carbon black company), Domsjö Fabriker (a leading Swedish speciality pulp manufacturer), and CTP GmbH (a German company specializing in polymer technology).
[This article has been published with permission from IIM Bangalore. www.iimb.ac.in Views expressed are personal.]